The Dow takes two record-breaking drops in one week

More from this show

The Dow Jones fell sharply for the third time in five days on Thursday, plummeting 1,033 points.

It isn’t just the Dow. S&P 500 fell 100 points, and Nasdaq Composite dropped 274 points. The Dow reached a record-breaking loss of 1,175 points on Monday, and by Friday it had shed about 2,700 points. Since the market is down 10 percent from its previous high, it’s considered a stock market correction.

Other than a concern about the Fed raising interest rates faster than expected because of the possibility of increased inflation, many experts believe the declines are not a cause for concern. Corrections are nothing new in the stock market, and they’re sometimes welcomed.

“I’m not worried, but I have started looking at my financial portfolio,” Jim Rounds from Rounds Consulting Group says. “I think this is a correction. I don’t know if I should be worried down the road, but I’m not worried right now.”

Rounds believes the Dow could fall again in the next week, only for it to shoot back up a couple of days later. He predicts the market will continue this up-and-down game until it eventually stabilizes.

“I look at it like, did what happen seem reasonable?” Rounds says. “The stock market has been overvalued for a very long time. What happens makes sense so far. A minor correction, it was overdue. What’s happening makes logical sense based on how things work.”

Jim Rounds: Rounds Consulting Group

Endeavour Watch Party

“Endeavour” Season 9 Watch Party!

National Memorial Day Concert image
aired May 28

National Memorial Day Concert

Super Why characters

Join a Super Why Reading Camp to play, learn and grow

NOVA will talk about how your brain determines your reality in
aired May 17

NOVA’s two part series on “Your Brain”

Subscribe to Arizona PBS Newsletters

STAY in touch

Subscribe to Arizona PBS Newsletters: